Question

Inventory accounts should be classified in which section of a Balance sheet?

• A. Current assets
• B. Investments
• C. Property, plant and equipment
• D. Intangible assets

Answer 1

The correct option is A Current assets

Current assets are short term assets. Assets which can be converted in to cash within short span of time are called current assets. It is expected to be realized in the company's normal operating cycle.

Inventories are easily convertible in to cash, hence treated as current assets.